Is a Financial Management Plan right for me?
If you are struggling with your debts, have had a change of financial circumstances or are simply unable to keep track of your financial commitments then a Financial Management Plan may be your way forward.
By calculating the total amount you can afford to pay towards your debts every month after your other commitments are taken into account we devise a payment plan that is fair to all your creditors and then negotiate with them on your behalf to restructure your monthly repayments.
We also try to get interest and charges frozen on all your debts so that more of what you pay goes towards reducing the debt (in many cases we are successful, but there's no guarantee this will be accepted every time).
Then it's simply a case of maintaining one monthly payment to us, which we distribute to all your creditors, either until your circumstances improve or your debts are cleared. A Financial Management Plan is an informal arrangement between you and your creditors and has the flexibility to be adapted to suit your needs if your circumstances change.
Although a Financial Management Plan could be the perfect solution to get your finances back on track you should also consider the following points before deciding to go ahead:
- They are not legally binding so creditors are still free to take legal proceedings against you at any time.
- Reducing the amount you pay means you will be repaying your debts over a longer period of time and may increase the total amount to be repaid
- Your ability to obtain credit will be affected in the short term, and possibly in the medium to long term.
- You are still liable for paying your debts in full.
What will a Financial Management Plan cost me? ยปEntering into a Financial Management Plan with Money Debt and Credit
Cancellation and Cooling Off Period
You have a right to cancel the agreement at any time as set out in our Terms and Conditions of Business included in our information pack. In addition, you are entitled to a cooling off period of fourteen days which starts from the date we receive your signed Authority to Act form or the first payment (whichever is sooner). If you cancel your plan in writing during this period we will refund any fees already paid that are cleared funds. After this fourteen day period fees will only be refunded where we have been in breach of our obligations under the agreement.
Your Credit Rating
If you have missed or made late payments to your creditors, then it is likely that your credit rating is already damaged. Indeed, your creditors may have issued default notices because you have not maintained your contractual payments.
This information will be available to any potential lenders and will affect your ability to obtain credit. However it is important to remember that you should not be taking out further credit until your existing debts have been repaid.
Free Financial Management Plan advice
Act now. Call us free on
0800 16 999 46 or simply fill in the online application form above. Our initial advice is free and completely confidential so why not give us a call today...
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ
Consumer Credit Licence Number: 0580960